Labuan: The nearly year-old Labuan-Kota Kinabalu-Labuan express ferry service has been temporarily suspended since last weekend due to rising fuel costs and high landing fees at the Jesselton Jetty Terminal in Kota Kinabalu.

According to BERNAMA News Agency, LDA Holdings Sdn Bhd, the management company of the Labuan International Ferry Terminal, stated that the decision was made after operational costs became increasingly unsustainable for the ferry operator. The chief executive officer, Noor Halim Zaini, explained that the service, which resumed on May 28, 2025, after being halted during the COVID-19 pandemic, had provided a direct and convenient travel option between Labuan and Kota Kinabalu, eliminating the need for passengers to transit through Menumbok.

Noor Halim Zaini mentioned that the ferry service significantly benefited travelers by offering a direct connection between Labuan and Kota Kinabalu, and vice versa, while also contributing to increased visitor movement between the two destinations. Following the resumption of the service, the Department of Federal Territories allocated significant funding for the construction of a pontoon facility to enable ferry landings and facilitate the embarkation and disembarkation of passengers.

However, he highlighted that the sharp increase in fuel prices, coupled with high landing charges imposed at the Jesselton Jetty Terminal, placed considerable financial strain on the operator. He noted that while Malaysian passengers currently enjoy a 50 percent subsidy on ferry ticket fares, there is no corresponding subsidy for fuel, further compounding operational challenges.

Noor Halim expressed hope that the government would address this issue, as it not only affects ferry operators but also has wider implications for travelers and the tourism sector. The suspension of the service is expected to impact tourism flows and connectivity between Labuan and Sabah's capital, particularly for travelers who prefer a direct sea route.